To add to my discussion on pricing (more coming, promise), here is Seth Godin on pricing: (emphasis mine)
The other half of the pricing formula is the story the price itself tells. A Prius at $40,000 or a Prius at $10,000 is the same car, but the price becomes a dominant part of the story. You can tell a story of value/cheapness/affordability, or a story of luxury. If you price your product or service near the median, you’re telling no story at all with the price, giving you the chance to tell a story about some other element of what you sell.
In other words, if you are considering one higher price and one lower price, don’t compromise. Pick a story and stick to it.
Worth a full read to hear about the first half of the formula.